Comment by axelthegerman
4 days ago
By more efficient you mean taking hours to settle? And no inflation as in Bitcoin level volatility and up?
I'd love an efficient and cheap option to move funds online - especially for micro payments too. But so far I haven't heard of any crypto option that actually stayed around long enough to prove these things.
Happy to be pointed in the right direction here.
Stablecoins on any number of low cost networks are fine for small payments (I haven’t lost anything, not even $0.01 in 10+years, vs tens of thousands in chargebacks, mostly fraudulent, for credit card processors).
I factor in 2.5% total costs for transaction frictions, historically that is a bit over 3x our actual average cost from payer to bank account, but it would easily cover the occasional loss of a day or two of sales in a catastrophe.
Pick a top 5 stablecoin that has a good reputation and at least 3 years, on a network with at least that, and settle your accounts daily, or whenever the accumulation represents a significant dent if lost.
The approximate aggregate risk-cost of major (top 10) stablecoins is somewhere south of .001% per day, and is better than the aggregate risk-cost of national fiat currencies, which unremarkably collapse or suffer catastrophic inflation and rebasing on a regular basis. There are frequently several undergoing this process at any given time.
> The approximate aggregate risk-cost of major (top 10) stablecoins is somewhere south of .001% per day, and is better than the aggregate risk-cost of national fiat currencies
This thinking is dangerous and stupid. Learn from history: https://en.m.wikipedia.org/wiki/Black_Wednesday
This "stablecoin" garbage needs to die yesterday: a lot of people are going to lose their shirt when the first one blows up. Fixing exchange rates is folly, yet here we go again...
Why would I care if a stablecoin blows up? My payment cost allocation more than compensates for that possibility and my losses in a worst case scenario would be eclipsed to oblivion by the cost savings I have already realized.
3 replies →
>>This "government issued fiat currency" garbage needs to die yesterday: a lot of people are going to lose their shirt when the first one blows up.
What you are saying is a risk endemic to all fiat currencies, including stablecoins.
All symbolically represented forms of value quantization are subject to a failure of confidence. Cryptocurrencies are nothing new in this regard. All money is memetic in nature.
3 replies →